Something NU

Quick hits on an absolute great call from January.

Short one here. Will be doing a fuller write up at some point. I started this position in January and some of you tailed which is awesome.

Three of the Biggest Positive Surprises from the Call:

1. Exceptional deposit growth in Mexico: Nu attracted $3.3 billion in retail deposits in Mexico in just over a year since launching their checking account product. This rapid growth demonstrates strong customer trust and adoption in a new market. Listening to the call I couldn’t help (jokingly) wonder if at some point the cartel gets upset at NU for stealing the financing customers.

2. Record profitability metrics: Nu achieved a record annualized return on equity (ROE) of 28%, which they noted is one of the highest in the industry. This level of profitability at their scale is impressive. They’re technically a bank, but also not really a bank. This one is all about growth, but they do manage to banking metrics quite well.

3. Strong performance in Colombia: The launch of Nu's Cuenta product in Colombia quickly attracted over $220 million in deposits, with 80% coming in June alone. This suggests their expansion strategy is working well in multiple markets and was surprising to me. Seems like they have some things figured out.